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WFOE Registration in Shenzhen

Shenzhen WFOE Registration Service Hotline:86-755-82143512,

The Wholly Foreign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor(s). In China, WFOEs were originally conceived for manufacturing activities that were either export orientated or introduced advanced technology. However, with China's entrance into the WTO, these conditions were gradually abolished and the WFOE is increasingly being used for service providers such as a variety of consulting and management services, software development and trading as well.

A WFOE does not include branches established in China by foreign enterprises and other foreign economic organizations. The Chinese Laws on WFOE do not have a clear definition of the term of "branches". The term of "branches" should include both the branch companies engaged in operational activities and representative offices, which are generally not engaged in direct business activities.

The advantages of establishing a WFOE, compared with other types of enterprises, include, but not limited to:

(1)Independence and freedom to implement the worldwide strategies of its parent company without having to consider the involvement of the Chinese partner;
(2)Ability to formally carry out business rather than just function as a representative office and being able to issue invoices to their customers in RMB and receive revenues in RMB;
(3)Capability of converting RMB profits to US dollars for remittance to its parent company outside of China;
(4)Protection of intellectual know-how and technology;
(5)No requirement for Import / Export license for its own products;
(6)Full control of human resources
(7)Greater efficiency in operations, management and future development.

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